The term "Insurance Fraud" might be best associated with an insurance claimant who fakes or overhypes an injury in order to bilk premium payouts from an unsuspecting insurance company. In "Mass" and "Class" legal actions, however, it is the insurance company that is accused of committing the fraud and bilking the insured, not the other way around.

So-called "Vanishing Premium" cases have been ripe for mass legal action. These cases involve customers being falsely told that if they make their premium payments for a set period of time (for example, 10 years) they will never need to make additional premium payments and the policies will pay for themselves. It can also involve claims of "fixed" premiums on universal life policies when in fact the premiums will require increases in order to maintain the policy in later years.

Several major companies have been involved in legal wranglings over these types of allegations.

Race-based Premium Discrimination

The sale of race-based insurance premiums is another area of insurance fraud. From the 1930's through the 1970's, several insurance companies engaged in the shameful practice of charging "race-based insurance premiums" on so-called "burial policies" and/or "industrial life policies". This despicable practice involved a nation-wide plot to unlawfully charge African Americans higher insurance premiums based solely on their skin color.

If you or a loved one has sustained financial loss or other damage as the result of insurance fraud, call VanDerGinst Law at 1-866-843-7367 or click here for a FREE online case evaluation. Your initial consultation is guaranteed free of charge. During that visit, we will be able to tell you up front what we may be able to do for you, as well as what the attorney fees would be for your case. Our fees are always competitive, so don't hesitate to contact us and learn how we can help.

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